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July 2014

Blue Pages :: July 2014

WILL PARK CITY OPEN THIS SEASON?... FOREST SERVICE SETS SUMMER GUIDELINES... TRAIL RATING SYSTEM WON'T GO TO POT... LITTLE BROTHER MIGHT BE WATCHING... AIMING HIGH AT POWDER MOUNTAIN... RETAIL EXPERT RAISES TAKE AT SUGARBUSH

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WILL PARK CITY OPEN THIS SEASON?
Imagine, if you will, an abandoned ski resort. No signs of life, no snowguns blazing; no lifts turning. This could be the story told among Parkites this coming season in Utah. While neighbors Deer Valley and Canyons open for 2014/15, the future of Park City Mountain Resort (PCMR) remains elusive.

In mid-June, 3rd District Judge Ryan Harris upheld the eviction order he granted to Talisker Land Holdings, LLC, the entity that owns most of the land that PCMR operates on, in May 2014; thereby reaffirming that the lease agreement between PCMR and Talisker had ended in 2011. The only thing left to argue was how PCMR would be packing it in.

“We have a right to possession of our property,” says Talisker’s Howard Shapiro. “It’s the reality that a lot of tenants face. The reason this is a mess is because they’re pulling lifts out and not allowing access. They’re leaving a mess for everyone but that’s not a good argument to prevent the eviction. Every year they make millions off our property that they have no right to be on.”

PCMR has continued to say they want to work things out with Talisker and Vail Resorts (which has been granted rights to the land by Talisker) but that Vail doesn’t want to play ball. However, PCMR refuses to walk away without a fight. They have threatened to literally pull up stakes and leave the land they do own at the base bare of all usable chairlifts and lodges (according to filings by PCMR, this process would take 33 weeks and cost more than $6 million). They would operate Woodward Park City—an aerial training facility—and teach beginner skiers on the lower portion of the land they do own. They would deny access to the base area, parking, snowmaking and water if Vail won’t let them stay. The result could cost Park City millions of dollars and thousands of jobs.

“These are complicated practical issues; complicated more by motions filed last week,” said Harris about PCMR’s motion to stay the eviction order. PCMR wanted the judge to use a "measured and sensible approach" in considering the effects the order would have on the town’s economy. They also need time to decide on claims for rent and damages, the manner in which the eviction would be enforced, and what structures would be considered fixtures that stayed with the land. “I’m going to sign [the order],” Harris ruled, “and then stay it so those motions can be heard.”

He set the hearing date for August 27, 2014, to determine whether to continue the stay pending appeal by PCMR and on what grounds. If the stay is extended, PCMR would be required to post a bond. Harris also ordered the parties to attend non-binding mediation by August 15 to try to work things out. PCMR’s appeal would probably hit the courtroom by early next year if nothing gets resolved. They will argue before a jury that the lease was a handshake, not a signature, and should continue. The jury might agree. But by then, all of the major lifts could be extracted and the resort would be incapable of running for 2014/15. This is certainly not an outcome any of the parties would want to see. Mediation might be just what it takes to stay that result. —Jill Adler

FOREST SERVICE sets SUMMER guidelines
In April, two and a half years after the Ski Area Recreational Opportunity Enhancement Act of 2011 became law, the U.S. Forest Service finalized its policy guidelines that put the act into practical effect. The act allows winter resorts to develop a variety of year-round recreation activities on the National Forests, though the guidelines present hurdles for some activities resorts might want to offer.

Even so, it’s a big step forward. The act broadened the range of activities enumerated in the National Forest Ski Area Permit Act of 1986, which limited recreation to Nordic and alpine skiing. The new act specifically includes such activities as ziplines, mountain bike terrain parks and trails, disc golf courses and rope courses.

The guidelines require that new activities are natural resource-based, encourage outdoor recreation and enjoyment of nature. The resource-based requirement eliminates some typical amusement-park rides, such as roller coasters, as well as skateboard parks and man-made water features. But it also puts some typical resort activities, such as bungee trampolines, mazes, and Segway tours, in a gray area. Local foresters will make decisions on those activities.

TRAIL RATING SYSTEM WON’T GO TO POT
We’re sure it seemed a stroke of genius to marijuana industry leaders in Colorado: use the ski industry slope-rating system of green circles, blue squares, and black diamonds to denote the potency of edible marijuana products. The idea didn't sit well with Colorado resorts—they fretted that the association with the pot industry might be viewed dimly by some visitors. Also, they have spent no small amount of time and effort to remind users that marijuana remains illegal in public, and on National Forest land in particular (yes, even at Mary Jane). Use of the trail-rating symbols for pot potency just didn’t seem right. To make sure it never happens, a last-minute rider to a bill passed late in the legislative session this spring bars the marijuana industry from adopting a rating system from any sports-related source.

LITTLE BROTHER MIGHT BE WATCHING
At the Rocky Mountain Lift Assn. meeting in May, NSAA’s Dave Byrd made the case for the use of surveillance cameras at top and bottom lift terminals, both as a teaching tool and for risk management. Many resorts are reluctant to take this step, because it smacks of Big Brother and, more to the point, could be used by plaintiffs to wrest large settlements from injury claims. Byrd says, though, that the opposite is true: the cameras very often show that the lifties acted appropriately, and that the customer is exaggerating the claim (or worse). Confronted with the evidence, most drop their complaint, and some apologize for making a fuss. A two-year study of video-taped incidents showed that roughly 85 percent of incidents that take place between the loading point and the unloading ramp are user-induced, and only two percent result from lift operator error. By clearly showing who’s at fault, the cameras reduce incident losses and legal costs—even when they place fault on an employee.

AIMing HIGH at powder mountain
The Summit Series, which purchased Powder Mountain ski resort, Utah, in 2013, seeks to create a cultural/entrepreneurial paradise that is both an extension of and home for the Summit Series of invitation-only retreats and discussions focused on business practices, technological innovation, and raising awareness and funds for various charitable causes.

If approved, Summit Powder Mountain will consist of mid-mountain homesites and a village core. The village will include restaurants, shops, juice bars, and a variety of high-density residences, which could be limited to 1,000 square feet. Some village units will serve as “cultural residencies” for “artists, performers, scientists, activists, athletes and other change makers,” according to the Summit Powder Mountain website. The village will host gatherings that aim to “build community, catalyze entrepreneurship, address global issues, and support artistic achievement, in an effort to make our world a more joyful place.”

Luxury homesites will sprout around the mid-mountain Hidden Lake, with lots of a half acre or more. But according to one report, there will be no McMansions: maximum square footage will be limited to 4,500.

Some locals remain skeptical, and they have company: a favorable report on NPR drew critical online responses from listeners across the country. One called the report "a love fest of a story" about "rich narcissistic brats" who arrogantly think they are going to save the world by building a hip retreat. Will the founders’ idealism survive the more challenging bouts with reality that lie ahead?

RETAIL EXPERT raises take AT SUGARBUSH
It’s not easy to be a cutting-edge retailer when you’re located in the mountains. And, as retailing and consumers become more sophisticated, it gets more difficult. That’s where Leisure Retail Partners (LRP) comes in. With a focus on retailing, and especially on recreational retailing, the outsourcing company takes on retail operations, and shares profits with the resort.

Sugarbush was the first to take this route, partnering with LRP last season. The result: spending per shopper was up 22 percent. (LRP measures sales per person, rather than total sales, since visitor volume can vary so much from year to year.) Sugarbush receives a percentage of gross sales, and was able to cut its overhead, labor, and inventory costs.

LRP worked with Sugarbush to find the right mix of apparel, accessories, and souvenir/logo gear for two sports shops, golf shop, health club store, and other retail outlets at the resort. LRP redesigned the shops, invested in new fixtures and custom wall displays, and applied its graphic and merchandising expertise. With its singular focus on retail, LRP manages the business aggressively to move goods and maximize sales.